The expanding role of regulators in facilitating climate finance

Financial Stability Board report

As more funding is directed towards facilitating climate transition and legislation develops, financial regulators will have a key role to play.

New laws have to be fleshed out, sustainable investments need to be effectively supervised and climate risks must be identified and managed. A recent report from the Financial Stability Board identifies two areas in which regulatory action will be essential: Regulators need to measure climate risk on a systemic level; regulators should identify information gaps in order to facilitate the process of collection of climate data and ensure effective supervision over the financial system. Climate risk under the spotlight long-term In the European Union, measurement of climate risk in the...